The economic pain inflicted by plunging oil prices is hurting the country more than expected, but that pain should start to ease in the next few months, the Bank of Canada says in its latest forecast.

Unlike what the bank did in January with a surprise cut, the bank opted Wednesday not to change its overnight lending rate, leaving it at 0.75 per cent.

The Canadian dollar gained almost a full cent to 80.60 cents US on the news, as currency traders seemingly focused on the lure of stability as opposed to a rate cut which would have made the loonie less attractive as an investment. Click here to read more.